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Iceland is struggling with electricity shortages – cryptocurrency production is likely to be limited

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Island and Bitcoin
Source: Shutterstock, Ink Drop

Iceland is a country that attracts many people with its nature and living conditions. The country is also known for affordable electricity prices, which have also attracted BTC mining companies to the country.

Iceland and BTC mining

The country is currently struggling with a major shortage of electricity. The main energy company Landsvirkjun thus, it had to significantly reduce some customers, including BTC mining companies. According to the executive vice president, they have a record demand for electricity and low water reservoirs Tinny Traustadottir, the biggest impact on restrictions.

Cryptocurrency mining is generally relatively popular in Iceland, mainly due to low mining costs. Low energy costs have attracted mining companies such as Hive Blockchain Technologies Ltd., Genesis Mining Ltd. A Bitfury Holding BV. However, from 7 December, all electricity applications related to cryptocurrency mining will be rejected. It is therefore questionable how the BTC mining process in Iceland will develop.

Restrictions and bans on cryptocurrency mining are not at all uncommon. It is worth mentioning Sweden, where there are more and more voices in favor of a mining ban, especially in order to meet the country’s commitments on climate change. The estimated annual consumption of BTC is at the level of 143 TWh. This figure is up to 8 times higher than the combined consumption of the social network Meta and Google, which is 17 TWh.

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All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

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